Budget 2018: Know your savings if FM Jaitley changes tax exemption limit

There have been reports that Union Budget 2018 could bring a huge relief for the middle class, with Finance Minister Arun Jaitley increasing the personal tax exemption limit and tweaking tax slabs. This is the last full Budget of the Narendra Modi-led National Democratic Alliance (NDA) govt in its present term.

The finance inistry has received proposals that the tax exemption limit should be increased to at least Rs 300,000 per year, if not Rs 500,000, from the existing Rs 250,000.

A tinkering of the tax slab, should that happen, would also give a substantial relief to the middle-income group, especially the salaried class, which has been hit by the impact of retail inflation lately.

Business Standard takes a look at the likely scenarios of a change in the personal income tax exemption limit and how your wallet would be impacted in each of those scenarios.